Falling tea auction prices and rising labour costs have forced Limuru Tea to issue a profit warning
The company attributed the projected profit drop to higher wages driving up labour costs and declining tea prices at the Mombasa tea auction.
The company said in a notice:
“The Board is of the view that the estimated decline in the financial performance of the Company for the period is mainly due to high operational costs driven by rising labour costs as a result of higher wages, and adverse market conditions where Kenya’s tea auction prices, as reflected at the Mombasa Tea Auction, declined between 2024 and 2025 due to an overall reduction in the global demand compared to elevated stock levels in the Kenyan market.”
Data from the Tea Board of Kenya shows that average tea auction prices per kilogram at the Mombasa Auction fell 6 per cent to Sh277.82 in 2025, down from Sh295.75 in 2024.
The Nairobi Securities Exchange-listed firm joins a growing list of listed companies that have warned shareholders to expect profit declines of at least 25 per cent.
Limuru Tea joins a growing list of Nairobi Securities Exchange-listed companies that have warned shareholders to expect profit declines of at least 25 per cent.
The tea sector has faced challenges, with other listed companies like Kapchorua Tea and Williamson Tea reporting similarly weak results.
Other companies that have warned of profit declines of 25 percent or more include Standard Chartered Bank Kenya, Liberty Holdings, CIC Group, WPP Scangroup, TPS Eastern Africa, Umeme Limited, Kenya Airways, and Shri Krishana.
Limuru Tea reported that pre-tax losses of Sh10.6m in the financial year ended December 31, 2024.
The company expects to release its financial results for the year ended December 31, 2025, by the end of March 2026.
